Chasing the Norm

Australian academic and blogger on politics, international relations, and culture

Tag: HealthCare

The Big Man game: Obama, Healthcare and his Foreign Policy

One of the most long running debates in International Relations is known as the Agent/Structure Problem. It is perhaps best summed up by a famous Marx quote that “People make History, but not in conditions of their own choosing“. Which of these was more important inquiring minds wanted to know. Could great individuals through sheer strength of will and character change the globe, or do conditions need to be right not only to birth & shape the history makers, but to give them space in which to act. In short, what is more important, the agents or the structure in which they operate? This isn’t just a debate about theory, how you answer this question and your assumptions, will drive both both what, and how you study history and International Relations. In the wake of Obama’s health care victory we have to very good examples of authors disagreeing over this fundamental point:

First up Andrew Sullivan, batting for the Agent side (if that sounds a little Matrix-like to you, fear not, individuals or groups are known as ‘Agents’ in International Relations jargon)

“In Barack Obama’s agonising, year-long effort to pass universal health insurance, the latest bump in the road may seem trivial, and the president must surely hope the Indonesians don’t take it personally. At the last minute, he cancelled his trip to the place he grew up in. The visit was actually of great personal importance to him and a critical part of his message that America and a moderate Islam can and will get along.

But he also knows that his clout abroad depends on his success at home. The linkage matters. There is a connection between healthcare reform and the war on terror, and between relations with China and the entire Obama narrative…… A presidency failing at home only undermines Obama abroad. Dmitry Medvedev knows this as he negotiates with Washington over Iran; Binyamin Netanyahu knows this as he stays on the phone with Washington’s neoconservatives, who are promising that if he holds on they can destroy Obama for him; Ayatollah Khamenei and Mahmoud Ahmadinejad know this as they assess whether they can outlast this frustrating leader of the Great Satan; the Saudis know this; China knows this”

Batting for the Structuralists is the IR specialist Stephen M. Walt

“Will yesterday’s passage of health-care reform give a positive jolt to U.S. foreign policy? Is Obama the new “comeback kid,” with new clout at home and a more formidable hand to play abroad? Will he now pivot from domestic affairs to foreign policy and achieve a dazzling set of diplomatic victories? My answers: no, no, and no….
There isn’t a lot of low-hanging fruit in foreign policy. He might get an arms-control agreement with Russia, but there aren’t a lot of votes in that and there’s no way he’ll get a comprehensive test-ban treaty through the post-2010 Senate. Passing health care at home won’t make Iran more cooperative, make sanctions more effective, or make preventive war more appealing, so that issue will continue to fester. Yesterday’s vote doesn’t change anything in Iraq; it is their domestic politics that matters, not ours. I’d say much the same thing about Afghanistan, though Obama will face another hard choice when the 18-month deadline for his “surge” is up in the summer of 2011. Passing a health-care bill isn’t going to affect America’s increasingly fractious relationship with China, cause Osama bin Laden to surrender, or lead North Korea to embrace market reforms, hold elections, and give up its nuclear weapons.”

Though Walt is correct that passing health care wont in itself solve any of these factors, I side with Sullivan. As a constructivist afterall I really should. Constructivism is an approach to International Relations which identifies how agents socially construct much of the structures they find themselves in(and in turn their own identity as agents). To take the most well known of examples (and papers) the ‘anarchy’ of the world between nation-states today is as Alexander Wendt claims what states make of it (pdf). That is, how the world is seen determines what is seen. How Obama is seen, especially by the other Big Men of the world is important to what influence and credibility he is likely to have with them. The more Obama is seen as a successful domestic leader, the better he will be as a foreign policy leader.

To cite from a local example, here is Michael Wesley in one of my favourite books ‘The Howard Paradox’:

“Over time, [John]Howard has come to enjoy the international aspect of his job. Domestically, those with whom he regularly comes in contact either owe him, resent him or want his job; internationally, he is able to mix with equals who are familiar with the challenges of national leadership, and who can offer observations and advice untainted by designs on his job. In recent years, according to one journalist, Howard has enjoyed the status of being the respected elder statesman in a region that respects seniority’
Michael Wesley, (2009) The Howard Paradox, ABC books

Wesley makes many arguments for why Howard was able to do much better than his critics alleged he would, but that last sentence is perhaps the wisest. By 2002, when his record started to shift in his favour, Howard had been in power 6 years with three highly successful election victories under his belt. To those in the region he was clearly a very capable political operator and not going anywhere soon. As other regional elders like Malaysia’s Mahathir retired, Howard came to assume one of the roles as regional elder statesman.

Obama doesn’t have the same luxury of time that Howard did. The US probably does a disservice by its Presidents by forcing an 8 year maximum, but they do start from a significantly higher platform than anyone else does. Obama, especially as a younger (and lets be honest black) president needs to stamp his international authority and quickly. Being dominant at home doesn’t change the structures that confront him internationally, but a clear legislative victory (and especially one of this magnitude) is likely to send a signal that he is a statesman to be respected and not just a lucky winner of the White House. His party will lose seats in November, but you’d have to be firming on betting that Obama will win in 2012. The message of all this to the Big Men and Women in governments around the world? This man is not weak, impatient or going anywhere. Deal with this man now, as he is only going to get better at this.

Politics is built on many things, ideas, history, geography, economics, and demographics, but it often ends with two big men in a room negotiating how all these factors go together. As Marx said, people make history.

Letting the Market be the Market

One of the fundamental principles handed down to us from the modern birth of democracy was the imperative to separate church and state. Having had well over a thousand years of church dominated political life, thinkers in the west came to recognize that such cross-over harmed both. Government failed the people physically and the Church spiritually as both were corrupted from their primary purpose. It is also no co-incidence that America is one of the most religious places on earth due to giving the churches wide space to act outside and away from the grasp of state-doctrine & man-anointed leaders.

This principle is well ingrained, and now as we end the first decade of the 21st century I’d like to advocate another similar principle: The separation of Corporation and State

Lindsay Tanner writing in the Age this morning makes the point well in relation to health-care:

Australia has been fortunate to avoid the most extreme form of this phenomenon, where individual companies became vehicles for social welfare policy.

American car manufacturers are threatened with bankruptcy partly because they are burdened with enormous health and pension obligations. China is struggling to build a social safety net as it can no longer afford to force companies to provide services such as health care and housing.

This is something that has always intrigued me, in watching apparently pro-market forces condemn government paid health-care services. Even some of the most thoughtful tie themselves in knots trying to justify the massive costs forced onto business, all the while charting those for whom the recession has meant not just the loss of their job, but their health care too. But in spite of this burden on business, and great risk on the individual, the idea of universal coverage paid for by taxation (and lets face it US rates arn’t that much lower than anywhere else in the developed world, and such costs pale next to the defence budget) is anathema and must be rejected out of hand.

Yet why should business’s already struggling to compete as efficiently as they can, be forced to provide for the healthcare needs of their employers. They only pay for their education when it comes to specific business related learning, so why cover their general maintenance and well being too? If business’s want to add an extra incentive to attract workers thats great, but most business’s offer it only because they know they have to (in some cases are forced to) And so issues related to hiring and firing and workplace flexibility become infinitely more complex and emotionally tied up due to the link to the health of both the employee and their family. Given business’s already pay taxes, why are they forced to become a secondary social welfare vehicle ?

Yet the point is obvious in other areas too. In politics our politicians are ever more having to account for who they met and interact with, less they be revealed to have dined from the table of Lobbyists (and to which President Obama has, -at some cost to the progressive movement- banished from the white house staff)

Even more transparently, corporations and states rarely mix for a beneficial outcome to the public, from dodgy deals in no-bid contracts, to the vast extent of corporate welfare which burdens out budget and distorts our policy, particularly in primary industries such as Agriculture and Manufacturing. And whist the prophets of the free market warn darkly about the return of tariffs, the single greatest force encouraging such protectionism is the very corporations who are idolised by these same figures. Individuals and towns are often ignored by governments, but put a big corporation before a government to plead it’s case and more often than not tax payer money seems to flow their way. All for the good of the people we are told.

This was also one of the great faults of the Howard Government, which claimed to be pro-market, yet was more accurately pro-business. What major companies began at the start of its time in office, it put in all viable resources to see them continue. As I outlined a while back, the Howard government was relentless in its efforts to protect the major corporations in Australia from competition and the forces of the market, even when it hurt it’s own electoral base. That is those who advocated the most about preventing government distortion of the market to benefit the social welfare (such as in opposing regulation or taxation) were often the first to embrace their own distortions when it helped corporate welfare.

Of course no complete seperation is possible, nor should it be advocated. Just as we would lose out if we tried to ban religious arguments from our public sphere, we should not try to stop corporations advocating their case or playing their role before the public. But where possible, government should see that their mission is quite different to that of corporations, and too close a link (however much it might help in promoting wealth and prosperity) is likely to corrupt both away from their actual skills and constituency.

After the experience of the middle ages, new political thinkers realised that seperating the church and state benefited both. After the experience of the depression, fascism and the new market crashes, we should realise that separating Corporation and State will also benefit both. Unleash the market to compete as vigorously as possible, and restrain the state to keep as focused on individual freedom & well being, not business bottom lines as possible. In short, let the market, be the market. It’s a lesson those who profess to love it most, will find the hardest to accept.